Morgan Asset Management: Expect the Federal Reserve to cut interest rates as early as the end of July

Morgan Asset Management's Chief Market Strategist for the Asia-Pacific region, Xu Changtai, suggests adjusting the stock-bond allocation ratio from 6:4 at the beginning of the year to 5:5, and even recommends more conservative investors adjust their ratio to 4:6. He advises reducing holdings in US stocks and adding more European stocks. He will reduce holdings in non-essential consumer goods companies with high import relevance and is optimistic about utility stocks, service industries, financial industries, as well as companies in the medical industry that provide services and develop drugs. He is bullish on mainland China, Hong Kong China, Japan and Indonesia markets focusing on quality enterprises with strong cash flow and bargaining power. Xu Changtai expects that the United States has a chance to start cutting interest rates by late July at earliest; realistically it may happen in September, October or December - three rate cuts within this year totaling 75 basis points. The market currently agrees on a June rate cut; he adds that if Federal Reserve were to cut rates in June then March & April's non-farm employment data would need to fall below 100k for it to occur.